Went to an inspection today on a deal we’re thinking of buying. This was a weird one, in that the listing broker allowed all the buyers to walk through the property prior to having an accepted offer. I think this is good practice on the part of the listing broker, because it gives the seller … Continue reading “Imitation, flattery, blah blah blah”
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Another idea for real estate entrepreneurs
At the ULI discussion last night, I was asked about opportunities I see for young entrepreneurs wanting to get into real estate. I gave a fairly macro answer about the middle class returning to big cities and how that is going to continue to drive increases in rents and property values in urban centers. But … Continue reading “Another idea for real estate entrepreneurs”
Why I don’t talk about cap rates
About 10 times a week, people ask me what kind of cap rates I expect from our deals. In my answers, I strongly resist using the term cap rate, to the point that people think I’m a little strange. This is kind of weird, right? Any book you read about investment property is going to … Continue reading “Why I don’t talk about cap rates”
Looking for a new assistant
Forgive me for the lack of posts the last few days. Have been snowed under with work, in part because we recently parted ways with my assistant. The bad news is that we’ve had to do a bit of scrambling to pick up the slack caused by her departure. The good news is that we’re … Continue reading “Looking for a new assistant”
What happens when a sub-market gets hot
Here’s one of the irritating things that happen when a neighborhood gets hot: Amateurs jump in. Someone puts a good deal on the market. Amateurs, seeing the kind of rents we get but not how much it costs to get them, bid the price up. We lose the auction. The amateur wins the auction but fumbles the … Continue reading “What happens when a sub-market gets hot”
All about earthquake shut-off valves in Los Angeles
Was at an inspection yesterday and got an interesting question from the listing broker, which I think deserves an answer here. The building in question, which was built in the late 1980s, had one earthquake shut-off valve installed on each bank of gas meters. For those who don’t know, an earthquake shut-off valve is a … Continue reading “All about earthquake shut-off valves in Los Angeles”
Hello agents!
It has recently come to my attention that many Los Angeles real estate agents read this blog. It’s not that surprising. After all, as we have discussed here many times, apartment deals, particularly in rent controlled areas like LA, are very, very different from single family or condo deals. And the multifamily training provided to … Continue reading “Hello agents!”
Some self-promotion
Have just been invited to join the panel at an Urban Land Institute forum on acquisitions. I’m going to have to figure out how to tone down my habitual profanity so that they’ll invite me back. Would love to see / meet readers there. Here’s the link for registration. The flyer is below:
Adding value to apartment buildings: Sometimes more art than science
One of the problems we wrestle with is how much to spend on improvements to a building where the impact on rents in unquantifiable. With most improvements, we have internal numbers we use to predict how much additional rent we’ll get. These internal numbers derive, in part, from so-called “natural experiments” we have conducted in the … Continue reading “Adding value to apartment buildings: Sometimes more art than science”
Trying (and failing) to hire a part-time bookkeeper
We’re currently looking for a part-time bookkeeper. Our job posting asks people to send a short covering note letting us know why they’re interested in the job, whether they view it as a long-term or short-term opportunity, and to tell us their three favorite bands. So far, of the approx. 50 resumes I have received, … Continue reading “Trying (and failing) to hire a part-time bookkeeper”